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HYIP = Ponzi Scheme = Scam
Posted By Jim On 05/06/2006 @ 2:19 pm In Personal Finance | 5 Comments
High Yield Investment Programs are nothing more than glorified Ponzi schemes meant to do one thing – separate you from your money in a clever and exciting way. Avoid these at all costs. Avoid the brainwashing. Avoid losing your money in a “get rich quick” scheme, they only get a handful of people rich – the creators of the scheme.
What is a Ponzi Scheme? In 1920, Charles Ponzi promised to double your money in 90 days. Guaranteed. His original scheme involved buying postage stamps in other countries and exchanging them for stamps here, earning a great rate of return as long as he could convert the stamps back into cash. He started a business, starting taking in investment money, and when he discovered his scheme was harder than it seemed, he was soon paying off earlier investors with the money from later investors – the classical pyramid scheme. Anyway, you can see where it goes.
Ever heard of 12 Daily Pro? You invest money to buy advertising credits, you autosurf the web (for seven minutes they show you a bunch of websites, 25 seconds each), and you earn a return on the advertising 12 Daily Pro earns. Sounds good right? Check out ABC4  and do a search for 12 Daily Pro and watch all the great expose videos.
Watch Boiler Room  and pay very close attention to the poor guy that Giovanni Ribisi’s character gets to buy into the latest “hot stock.” Then watch as he gets him to buy in more after it goes down. Don’t be that guy.
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